Annual Report 2010 in PDF - BBA Aviation

Revenue ‡ 2010 2009 Inc/(dec) 20091 Inc/(dec)
£m £m % £m %
Performance
USA
Europe & ROW
Total
58.9 51.8 14 52.2 13
2.6 0.6 333 0.6 333
61.5 52.4 17 52.8 16
1 At constant exchange rates
‡ APPH Houston was transferred from APPH to Legacy Support with effect from 1 January 2010 to reflect its focus on legacy platform support.
2009 revenues in Legacy Support and APPH have been restated in these results accordingly.
Revenue for the Legacy Support business grew to £61.5 million (2009: £52.4 million), an organic increase of
16% over the prior year. Softness experienced in the frst half in IGS and Legacy Support Houston’s MRO
activities abated in the second half and Ontic US experienced signifcant growth as a result of the ramp-up
and the second half weighting of revenues from the Goodrich Landing Gear licence. Ontic UK benefted
from a full year of revenue from the Kidde Graviner Gaseous Emergency Oxygen Equipment licence.
Ontic US invested signifcantly in process enhancement to ensure that over the long term it can continue to
deliver successfully the high growth rates we have seen since its acquisition in 2006. This bore fruit in
the second half with four months of record revenues and improvements in key operational metrics.
Ontic US demonstrated its capabilities in delivering on complex US Government contracts through the
Goodrich Landing Gear licence execution and as a result of this it also won a competitive bid to supply parts
to the US Army for the Apache helicopter. The order book continued to grow and at the end of 2010 it stood
at a record $65 million (2009: $56 million). The opportunities to grow the Legacy Support business both in
the US and the UK through sales from existing licences and new licences continue to be robust due to the
life extension of military platforms and original equipment manufacturers seeking to rationalise their
product and platform support of erings.
In the frst quarter of 2011 Legacy Support announced that it had agreed to acquire GE Aviation Systems’ fuel
measurement business for a cash consideration of $62.5 million. The acquisition enhances Legacy Support’s
exposure to the commercial aviation market, expands its non-US product portfolio and adds third
generation electronics expertise, an increasingly important legacy market.
Directors’ Report — 51